DEFINITION of 'Property Dividend'

An alternative to cash or stock dividends. A property dividend can either include shares of a subsidiary company or physical assets such as inventories that the company holds. The dividend is recorded at the market value of the asset provided.

BREAKING DOWN 'Property Dividend'

This type of payout structure is less common than the regular stock or cash dividend system. From a corporate perspective, property dividends can be distributed if the parent company does not wish to dilute its current share position or if it does not have enough cash on hand to distribute healthy payments.

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